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Although CRM has become a fallen horse among many companies saddled with expensive enterprise software, it’s obvious from our sample that the concept itself is how we expect business to operate.

Surprisingly, 28 percent of our respondents (see the full report below) would invest the majority of their dollars in CRM while 22 percent selected "mass media." Does this mean that the softness in the advertising market is not solely driven by the economy but also by a fundamental change in the structure of marketing? Or are our responders pioneers, far out in front of the pack?

It was also interesting that 32 percent thought Marketing Strategy was the most important reason for success in CRM. The thrust of CRM to date has been focused on customer service call centers, web-response, and sales force management. Could this mean that marketing will become mission control of CRM, perhaps as it should be?

Which brings us to the next response: 51 percent said that marketing typically leads the charge in CRM. Is this really the case or just wishful thinking? Few statements in the verbatim responses actually support that number.

There is no doubt as to meaning of the initials, CRM -- Customer Relationship Management. However, a few of the alternatives offered, such as Customer Relationship Marketing and Customer Retention Marketing -- or the McKinsey phrase, Continuous Retention Marketing -- all point to the same strategy.

The definitions of CRM fell into 2 buckets: (1) tracking customer behavior for the purpose of developing marketing and relationship building processes that bond the customer to the brand, and (2) developing systems (software) to provide one to one customer service and personal contact between the company and the customer.

The distinction between these two definitions may be fine, but one that has driven a wedge between marketing and IT when it comes to the implementation of CRM solutions. "Best customer marketing," "loyalty," "retention," "one-to-one," and "personalization" were the most commonly used phrases.

The best and worst of CRM is not quite Dickensian, but close.

The best and worst of CRM is not quite Dickensian, but close. By far and away, the most often mentioned lament was that data were not used, regardless how extravagant or simple the systems and processes. (We call this "more data than we need and less data than we want.")

Is this a function of the cultural reluctance to move from a mass media model to a targeted marketing model and an infrastructure with the wrong skills and organization? Many mentioned the tyranny of technology, where the IT department leads marketing around by the nose or builds inflexible systems. There also is a plethora of weak vendors who talk a lot and do little.

On the positive side, Amazon has become everyone’s favorite example of something that works, most of the time. Good for them. Other positive examples related the impersonal institutions that personalize – like banks. There were other CRM examples where sales increased or where new products were introduced as a result of consumer learning and a research project that turned into CRM when the research turned into “buzz” about the business and created referrals that increased subscribers.

In summary, the best line was a variation of KISS (keep it simple stupid) —"don’t try to boil the ocean." In other words, create small successes and small victories. Don’t rush out to buy a 747, when all you need is a fuel-efficient Honda Accord.

If the budget were not an issue, where would you invest
the majority of your marketing dollars?

What is the single biggest reason for CRM success?

Who typically leads CRM at your company (or client companies)?

What is your definition of CRM?
And, by the way, what do those initials stand for?

Please describe your best -- or worst -- experience with CRM

Do you work at:

Number of years in marketing?

If the budget were not an issue, where would you invest the majority of your marketing dollars?